Tough Times Breed Financial Cons

Fraud exists in all economic situations… good or bad. But the one thing we know for sure is that in a depressed economy the amount of fraud increases dramatically, across all industries, especially as the amount of unemployment rises and financial institutions restrict lending practices, thus making it harder for consumers to maintain the same kinds of lifestyles they had in better economic times. The demand is still the same but the ability to get the financial backing isn’t and businesses have always been targeted by scammers, no matter what the economic outlook. As businesses attempt to secure financing it should come as no surprise that criminals are working these financial areas as well…. “follow the money.”

So, there are more cases of individuals committing financial crimes. Simultaneously, the amount of fraud being committed against consumers or businesses by unscrupulous individuals or organized crime rings attempting to prey on their drastic financial situations has increased as well, i.e. frauds committed against homeowners facing foreclosure and unscrupulous credit repair rings preying on people trying to raise their credit scores. And recently, we have also seen higher levels of fraud as the number of disasters around the globe has increased and fraudsters are targeting well meaning consumers interested in supporting global relief efforts. In the U.S, we saw a significant amount of this during major disaster situations like 911.

As the economy improves we should see some of this start to diminish but fraud will never go away…